In recent weeks, the price of sugar in Kenya has reached record highs, leaving many struggling to afford the basic commodity. A kilogram of sugar now retails at approximately Ksh. 200, up from Ksh. 150 just a few weeks ago.
Small businesses that rely on sugar in their products such as bakeries, confectioneries and hotels are facing declining profit margins as they struggle to absorb increased costs without passing them on to their customers. Bakery owner, Sarah Nyongesa, has had to increase the price of her products in response to the sugar price hike. “In the previous year, one Kilogram of cake was sold at Ksh.1,300, but for now, it sells at Shs. 2,000,” said Nyongesa.
Hotel business owner, Sharon Naeku, has faced similar issues, stating that she is now buying one kilogram of sugar at Ksh. 200, a significant increase compared to past prices. This has had an impact on her sales, as she has been forced to increase the prices of her menu items slightly.
Consumers are also feeling the burden of these price hikes, with many having to adjust their consumption habits. Josephine Musombi, a resident of Majengo in Narok, said that the rising prices of sugar have forced her to cut back on her daily tea consumption. “I normally drink tea three times a day. Nowadays, I do take one time and that is in the morning. It is becoming expensive to buy sugar every week or buy a cup of tea in hotels,” said Musombi.
The decrease in demand for sugar has also impacted sales for businesses that rely on it as a key ingredient. Emmanuel Saruni, a supervisor in Kanini Haraka Enterprises Limited in Narok town, notes that sales on sugar have decreased in the past two weeks, “maybe because of the price increase or maybe consumers are looking for alternatives.”
The market for sugar in Kenya has been experiencing instability in recent years, with prices fluctuating significantly due to supply and demand issues, as well as challenges in the sector such as illegal imports and outdated policies. These changes have had an impact on many households and small businesses across the country.
